MGST 391 Lecture Notes - United States Treasury Security, Telegraphic Transfer, Direct Debit
28 Apr 2013
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Document Summary
Decentralized cash management: great autonomy, quick and more response to needs of individual operating units, more opportunities to invest on short-term basis. Float is amount of money tied up between initialization and finalization of payment. Cash pooling is netting of debit and credit balances with same bank to reduce interest cost. By receipt from selling part of business. Treasury bills (ious by govt. issued weekly for 91 days to finance govt. projects) Eligible bank bills (ious by those top rated banks whose bill bank of england agrees to buy) Certificate of deposits (certificates by bank acknowledging deposit for specified time) Certificate of deposits, treasury bills and eligible bank bills are negotiable and resalable. Lock boxes (speeds up payment by cheque) Bank draft (cheque by a bank drawn on one of its own account) It is a written payment order authenticated by official in sending bank which. Instructs by airmail to pay a certain sum of money to a beneficiary.
